What city has world's best quality of life?

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Story highlights

Austria's capital Vienna was rated the best city to live by Mercer

Eight out of the top 10 cities with highest quality of life are located in Europe

The worst city to live of the 221 surveyed around the globe is Baghdad, Iraq

The survey takes 39 factors, such as crime rates and medical care, into account

Vienna, famous for its hundreds of museums, 2000 parks and of course its roasted coffee, is the best place on the planet to live, according to Mercer's 2012 Quality of Living Index. This year's latest accolade makes Vienna number one in the world for the fourth year in a row.

The annual survey by the global human resources consulting firm points not just to Austria's qualities but to much of the region's virtues. Eight of the report's top 10 cities are in Europe. Zurich is the world's second most livable city while three German cities -- Munich, Dusseldorf and Frankfurt -- follow close behind.

"Overall, European cities continue to have high quality of living as a result of a combination of increased stability, rising living standards and advanced city infrastructures," said Slagin Parakatil, Senior Researcher at Mercer. This is despite economic turmoil, political tension and high unemployment in some European countries.

Australian, New Zealand and Canadian metropolises round out the top ten list.

The world's top 30 cities of the Mercer 2012 index

1. Vienna, Austria

2. Zurich, Switzerland

3. Auckland, New Zealand

4. Munich, Germany

5. Vancouver, Canada

6. Düsseldorf, Germany

7. Frankfurt, Germany

8. Geneva, Switzerland

9. Copenhagen, Denmark

10. Bern, Switzerland

10. (tie) Sydney, Australia

12. Amsterdam, Netherlands

13. Wellington, New Zealand

14. Ottawa, Canada

15. Toronto, Canada

16. Berlin, Germany

17. Hamburg, Germany

17. Melbourne, Australia

19. Luxembourg, Luxembourg

21. Perth, Australia

22. Brussels, Belgium

23. Montreal, Canada

24. Nuremberg, Germany

25. Singapore, Singapore

26. Canberra, Australia

27. Stuttgart, Germany

28. Honolulu, U.S.

29. Adelaide, Australia

29. (tie) Paris, France

29. (tie) San Francisco, U.S.

Mercer's survey results are based on an analysis of local living conditions comprising 39 factors in 10 categories. Political considerations include government stability and crime rates. Economic factors take into account banking services and currency exchange laws. Health considerations include access to medical care and pollution levels. Transport, housing and recreation are also taken into account.

City scores help multinational companies calculate compensation packages for the employees they dispatch overseas. A lower score often correlates into a better compensation package that includes hardship allowances, according to Mercer.

"The ongoing turmoil in many countries across North Africa and the Middle East has led to serous security issues for locals and expatriates," says Mercer's Parakatil. "Companies need to be able to proactively implement mitigation plans, such as emergency repatriation, or adjust expatriate compensation packages accordingly."

Around the word and on a regional basis, the cities that score the lowest are the following: